Graduate tax could promote the value of apprenticeships

Vince Cable's graduate tax proposals for higher education could see employers
reevaluate the merits of hiring young people with vocational qualifications
says City & Guilds

By Richard Tyler

7:14PM BST 19 Jul 2010

Vince Cable's "graduate tax" idea could make more employers see the value of hiring young people with vocational qualifications, the head of awarding body City & Guilds has said.

Chris Jones, director general of City & Guilds, said both employers and employees would be attracted to training schemes such as apprenticeships, which for the moment are not part of a review of whether higher education tuition fees could be replaced by a tax on a graduate's future income.

In a competitive jobs market such a tax would most likely be borne by employers in the form of higher salaries to compensate graduates.

However, further education, via diplomas, apprenticeships and foundation degrees – elements of which do attract fees – is so far outside the scope of the review, led by Lord Browne, the former BP chief executive.

Mr Jones said: "There's more to be played out about the graduate tax but what struck me is whether it is the employers taking a different view or whether it makes a fundamental difference to the view in the mind of the learner. I think it places apprentices as a much higher and more valued route to employment."

Related Articles

He added: "I think employers will think carefully. The enlightened ones will always be thinking of the optimal mix of the skills going into their organisation. For many, graduates will be their preferred route. But hopefully this will drive more strategic thought about skills."

Mr Jones said apprenticeships were now available in non-traditional areas such as finance, the law and sales. "That gives employers more choice and if the person enters the organisation earlier they are contributing more quickly. They have knowledge of the organisation as well as a technical ability – having those all-round employment skills that aren't often on display at graduate intake."

The Government has already signalled its support for apprenticeships over other forms of further education, with the Treasury increasing funding to the scheme while cutting back on funding for adult learning.